[Congressional Record Volume 168, Number 133 (Saturday, August 6, 2022)]
[Senate]
[Pages S4066-S4068]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
INFLATION REDUCTION ACT OF 2022
Mr. BARRASSO. Madam President, last year, Democrats in this body
passed a party-line spending bill, and they spent us into record-high
inflation. Ever since then, this has been nothing but bad news for the
working families of this country.
We have seen the worst inflation in 40 years. Prices have gone up
faster than wages month after month after month. Fifteen months in a
row now, prices are up faster than wages.
Now, Democrats' inflation has caused a recession. As a result,
working families are finding it much harder to get by. They can't keep
up. The average family can afford less today than they could the day
that Joe Biden took office--much less. The savings rate hasn't been
this low since the great recession. People are having to spend their
savings. Credit card debt is at an alltime high.
But the worst gut punch is about to happen right now, making all the
pain the Americans have suffered now extend for a longer period of
time. If Democrats pass this bill that is on the floor today, this
inflation crisis is going to get worse.
For weeks, there have been rumors that Democrats were working hidden
behind closed doors on another reckless tax-and-spending bill. The
American people knew it would be bad, and the bill that we are looking
at now is worse than expected.
Of course, the Democrats wrote it in secret. They didn't want the
American people to know what was inside it. Now, here we are, late on a
Saturday afternoon, and the Democrats are trying to cram it through
before people even get to read it. Members of my party were wanting to
read it earlier today. It wasn't even available, likely because it
wasn't even written yet.
I understand it is over 700 pages long. An earlier version, I saw 725
pages, with a cost of over a billion dollars a page.
Democrats call it their bill that they intend to try to use to reduce
inflation. But the more likelihood is that it will lead to double-digit
inflation. Haven't seen that since Jimmy Carter was in the White House.
The Wharton School of Business does a budget model. It says that this
bill, from everything that they have read so far, will actually
increase inflation for the next 2 years. It is bad enough for the
American people today. They can't put up with it for another 2 years.
Now, I am told that the Wharton analysis is usually the economic
analysis that the Senator from West Virginia, Joe Manchin, uses. Well,
I hope that Senator Manchin and every Member of this body pays
attention to that Wharton study.
A chorus of economists is saying the exact same thing as the experts
are telling us from Wharton. There is a nonpartisan group called the
Tax Foundation, and it says ``this bill may actually worsen
inflation''--worsen inflation. That is why I say we are looking at the
possibility of double-digit inflation. It is 9.1 percent now.
Democrats' favorite economist, Mark Zandi, says that the bill would
almost have no effect on inflation. How is it going to lower inflation
if it has no effect on inflation? And that is from a favorite of the
Democrats.
The Congressional Budget Office says the bill would have a negligible
effect on inflation. Clearly, there is broad agreement among experts
that the bill will not lower inflation.
Democrats were warned the last time, March of 2021. Democrats are
being warned again this time. And they
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are ignoring the warnings. But it doesn't take an economist to tell you
that this bill would be a disaster for working families.
The bill is going to mean more taxes, more spending, higher prices--
right in the middle of the combination of an inflation time and a time
of recession.
The cost, the burdens, of this bill are going to be borne by the
working families of this country.
Now, this bill is going to hit working families from all sides.
First, let's take a look at the taxes. Tax revenues were already at
record highs in this country--not enough for the Democrats but record
alltime highs of tax revenue.
Democrats want more--a lot more. The Democrats' inflation bill would
increase taxes by nearly half a trillion dollars. Now, this includes a
blatant violation of Joe Biden's campaign promise when he said he
wouldn't raise taxes on middle-class families.
The Joint Tax Committee says that this bill will raise taxes on the
very people that Joe Biden said he wasn't going to come after. The
Joint Tax Committee actually said the bill will raise taxes on people
at nearly every level of income. It will affect you, every one of you,
all across this country.
Now, Democrats, of course, want to raise taxes on American energy. It
has been their claim since day one when Joe Biden basically put the
target on the back of American energy and pulled the trigger. And,
amazingly, they want to do it in the middle of an energy crisis.
Remember, this is the energy crisis that the Democrats have created.
When Joe Biden declared war on American energy, American families
started paying the price and have been paying the price ever since
then.
The bill does nothing to open up exploration for energy and American
oil on American properties on Federal lands. No. It includes a new tax
on American oil and gas production. This tax alone will raise the cost
of energy for half of the households in America.
Now, this is at a time when one-third of the inflation in this
country is driven by the cost of energy. When you take a look at the
cost of food, energy is a component of that. Growing food, getting food
to market--all of those things are related to energy. That tax alone is
going to shrink the economy and cost jobs.
There is also a new tax on imported oil. And Joe Biden's energy
policy has been, basically: Please send us some oil. It was his policy
last year when he went to Glasgow. And he actually asked Vladimir Putin
to send us more oil from Russia as Russia was planning to invade
Ukraine. He is trying to cut a deal with Iran to get Iranian oil.
Venezuela--he sent emissaries to Venezuela asking for oil. And he went
hat in hand last month to Saudi Arabia saying: Please send us more oil.
And then the Democrats put in their bill an excise tax on that oil
that the President is begging to have sent to America. And then to add
insult to injury, they indexed the tax to inflation--high inflation
begetting more inflation. It means the more inflation the Democrats
cause, the higher the prices go up. More taxes, more inflation.
This is a vicious cycle of Democrat taxes and Democrat inflation. As
a result, the pain at the pump is going to get worse. Yet the worst
punishment of all is for American coal production.
Now, I am proud to say Wyoming has been America's No. 1 producer of
coal for decades. Coal is still the most affordable, reliable energy
known to man. It is used all over the world. Yet in this bill, the
Democrats want to raise taxes on coal companies by up to 16 percent of
their income.
Well, I am from a coal State. Senator Manchin is from a coal State.
He and I worked together on the Energy Committee. He is the chair; I am
the ranking member. Here is what the West Virginia Coal Association has
said about what is in this bill that we are going to be voting on
starting tonight. Joe Manchin's home State coal association said:
Why support anything Chuck Schumer, Joe Biden, Nancy
Pelosi, or John Kerry want for coal?
They go on to say:
It is incomprehensible why any miner [coal miner] would
support the Manchin-Schumer legislation.
This is going to punish West Virginia directly, and it is going to
punish the hard-working people of Wyoming. It is also going to punish
their customers who rely on affordable energy.
These taxes are clearly going to get passed on to the consumer--in
other words, higher prices, more inflation. Economics 101.
The Democrats also want to raise taxes on savings and investment at a
time when seniors are hurting. Seniors are already watching their
savings go down and their taxes go up. Inflation is so bad that there
are reports that seniors are moving in together because they can't
afford to pay the rent.
Yet Chuck Schumer and Joe Biden want to raid their 401(k)s. This bill
also contains a hidden tax increase. That is because the bill would
nearly double the size of the IRS.
Now, Democrats think that giving the IRS 80 billion additional
dollars to hire additional auditors--tens of thousands, over 80,000
more auditors at the IRS, an army of auditors--that they are going to
be able to squeeze another $200 billion out of American taxpayers.
They are not talking about a couple of rich people here. Eighty-six
thousand auditors aren't needed to go after a couple of billionaires.
They are going after mainstream America. They are going after families,
farmers, after small businesses.
The IRS is already one of the most powerful and unaccountable
bureaucracies in the Federal Government. But the Democrats say: Not
enough. We want to put you on steroids so you can squeeze more money
out of the families of this country.
The Joint Tax Committee says almost all of the money raised by
supersizing the IRS would come from those making less than $200,000 a
year. That is the Joint Tax Committee.
So the billionaires in San Francisco and Manhattan who run the
Democrat Party, they are going to be just fine. It is working families
who always foot the bill for liberal policies.
So what are Democrats going to do with half a trillion in new taxes?
Well, they want to do what they do best: give taxpayer dollars to their
closest friends and their biggest political contributors. That includes
hundreds and hundreds and hundreds of billions of dollars for the big
fans of the Green New Deal.
The bill puts American taxpayers on the hook for more than $315
billion in green energy loan guarantees. This will be billions and
billions for projects like Solyndra that went bankrupt when President
Obama was in the office and Joe Biden was Vice President. You would
have thought Joe Biden had learned those lessons from the horror
stories of the money being lost, the taxpayer dollars wasted in
projects that went bankrupt one after another after another.
The bill would give billions and billions for rich people to buy
electric vehicles. Unlike other vehicles, electric vehicles, they pay
no gas tax, which is how, of course, in this country that we pay for
the roads and the bridges and the highways. Democrats want to cut them
a big check as well. This is welfare for the wealthy.
The bill also includes supersized ObamaCare subsidies for people
making well over $100,000 a year. It is also welfare for the wealthy--
supersized subsidies on steroids.
Now, the subsidies were put in place at the beginning of the
pandemic. They were supposed to be temporary. Yet Democrats seem to
want them to continue forever. If Democrats extend these subsidies
permanently, this bill would not actually help at all with the deficit.
It would clearly add to the national debt.
In other words, Democrats are using the same sleight-of-hand
accounting gimmicks that they tried last year. Nine months ago, when
Democrats tried things like this in their Build Back Better Plan that
failed, even Senator Manchin admitted that it was ``smoke and
mirrors,'' a shell game, and budget gimmicks.
The Democrats are back to their old tricks right now. Here we are, 9
months later. The difference is, inflation is a lot, lot higher. The
pain people have gone through is felt more deeply.
Not a single Republican is going to vote for this monstrosity. No
Democrat should either. Joe Biden's economy is already the worst
economy that most Americans have ever experienced in their lifetime.
If Democrats pass this bill, it is going to get worse. And so I urge
my colleagues, don't inflict this kind of pain
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on the American people in the middle of a recession. The American
people are hurting enough.
I yield the floor.
The PRESIDING OFFICER. The Senator from Virginia.
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